Claiming caravan accommodation against tax

cobbingstones

Hi,

Any advice greatly appreciated.

I have a Ltd company and have gained a contract in a town that is not commutable. Instead of staying in hotels or digs and claiming those as accommodation against tax. Can I claim anything against the cost of a caravan and/or pitch fees? I am vat registered.

The caravan cost will be somewhere around £15000. I assume I cannot offset that whole amount against tax, but perhaps the interest on the loan and the pitch fees?

Many thanks

Gothicfairy

I have no idea about the tax issue but why on earth would a caravan cost 15k ? Even new would only run to about 7k if you know where to look, 13k at the most for a twin hobby. But second hand could save you thousands and be just as good.

Are you really sure you are ready to live "full" time in a caravan as it is not all that easy and each site is different so you might end up moving every 28 days depending on their permission.

pjclar02

Gothicfairy wrote: »

I have no idea about the tax issue but why on earth would a caravan cost 15k ? Even new would only run to about 7k if you know where to look, 13k at the most for a twin hobby. But second hand could save you thousands and be just as good.

Are you really sure you are ready to live "full" time in a caravan as it is not all that easy and each site is different so you might end up moving every 28 days depending on their permission.

I don't feel this in any way addresses the issues raised, which are specifically in relation to the tax implications. Moreover, I don't believe the OP has stated that they intend to live "full-time" in the caravan - I have a client who has a contract 2 hours away from their home, so they stay in the caravan for four nights a week, and then return home for three.

Back to the question - my view would be that the pitch fees will be claimable against tax. You could potentially introduce the caravan as a company asset, and claim capital allowances on it (as well as other running costs (insurance etc)). However, if you also use the caravan for private holidays then it may give rise to a benefit in kind which would have further tax implications for you.

Definitely worth running the exact scenario past your accountant as I'm sure there will be something you can claim.

Hope this helps.

greenface

Depend how you want to do this . We have a Caravan and a holiday homes lettings business. I also fit double glazing interestingly enough around the same area as my holiday home. For some reason i no longer use B&Bs or hotel when staying in this area but i have found a lovely little holiday home nearby that charges moderate rates per night and is often (always)vacant. Bill myself pay myself and even claim it back myself.

pjclar02

greenface wrote: »

Depend how you want to do this . We have a Caravan and a holiday homes lettings business. I also fit double glazing interestingly enough around the same area as my holiday home. For some reason i no longer use B&Bs or hotel when staying in this area but i have found a lovely little holiday home nearby that charges moderate rates per night and is often (always)vacant. Bill myself pay myself and even claim it back myself.

and presumably pay tax yourself on the rental income received?

greenface

After all deductions taken out it would be rude not to.;)